Traders Glossary

Explore, learn, and discover all trading-related terms here in our comprehensive glossary.

Bull

Someone who expects the market to rise.

Bull Call Ladder

A spread only using calls where the trader buys a lower strike call, sells a higher strike call and another higher strike call.

Bull Call Spread

Long term bullish strategy involving buying low strike calls and selling same number of higher strike calls with the same expiration date.

Bull Market

A rising market over a period of time (usually a few years).

Bull Put Ladder

A spread using puts where the trader buys a lower strike put, sells a higher strike put and another higher strike put.

Bull Put Spread

Short term bullish strategy involving buying lower strike puts and selling higher strike puts with the same expiration date.

Butterfly Spread

3-legged direction-neutral low volatility strategies involving either all call legs or all put legs. Suitable for rangebound stocks.

Buy on close

An order stipulating to buy the security at the close of the trading session.

Buy on open

An order stipulating to buy the security at the opening of the trading session.

Buy Stop

A buy order where the price stipulated is higher than the current price. The rationale here is when the buyer believes that if the security breaks a certain resistance then the security will continue to rise.

Buy-Write

A bullish strategy involving buying a stock and selling near term ATM or OTM call options to generate regular income. See Covered Call.

CAC 40 Index

The Paris Bourse index based on 40 stocks.

Calendar Spread

2-legged option trade involving buying a long term option and selling a shorter term option with the same strike price. A Calendar Spread must involve either all call or all put legs, you cannot mix calls and puts together for this strategy.

Call Option

The right, not the obligation to buy an underlying security at a fixed price before a predetermined date.

Call Premium

The price of a call option.

Call Ratio Backspread

Bullish strategy involving selling 1 or 2 lower strike calls and buying 2 or 3 higher strike calls.

Capital Gain

The profit realised from buying and selling an asset

Capital Loss

The loss taken from buying and selling an asset unprofitably.

Chicago Board of Trade (CBOT)

The oldest commodity exchange in the US. Known for listings in T-bonds, notes and a variety of commodities.

Chicago Board Options Exchange (CBOE)

The largest options exchange in the world.